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Tuesday, October 13, 2009

Refurbishment of Rivercity to boost Low Yat rental income

Property development and investment firm Low Yat Group expects to earn RM55 million in rental income from its Rivercity project over the next five years after it raises prices following a refurbishment.

Rivercity, located at Batu 3, Jalan Ipoh, in Kuala Lumpur, features eight 1- to 3-storey warehouses and shop-office blocks, built in the 1940s.

The properties are being given a RM7 million facelift, slated for completion by December, its deputy general manager for property development Leow Sian Hiong said.

After the refurbishment, Low Yat will increase rental rates to between RM4 and RM8 a sq ft from RM2 to RM4 a sq ft currently.
"We are refurbishing the properties to enhance the appeal of Jalan Ipoh and transform the area into a vibrant lifestyle hub.

"We may (further) raise rental rates after the fifth year, but it will depend on the market situation," Leow told a media briefing in Kuala Lumpur yesterday.

One of the three-storey shop-office blocks has been redeveloped into a seven-storey office building. It is home to Low Yat and Asia Pacific Land (AP Land) Bhd, which has moved out from Empire Tower in Jalan Tun Razak.

Low Yat, set up in 1947, is a substantial shareholder of AP Land, which has an integrated development worth nearly RM1 billion next to Rivercity.

Leow said the remaining seven blocks at Rivercity will comprise food and entertainment outlets, home furnishing concept stores, showrooms, beauty and wellness outlets, and electrical and electronics as well as telecommunications centres.

There will also be a 25,000 sq ft supermarket, which will boost Rivercity's current occupancy of 50 per cent to almost 90 per cent by the first quarter of next year.

Leow said Rivercity will be positioned to meet the taste and needs of the growing population of more than 300,000 families, students and business community within its 5km radius.

Meanwhile, Low Yat's development plans for next year include taking its flagship brand, Fairlane Hospitality, global.

Its real estate management firm, Fairlane Hospitality Sdn Bhd, offers hospitality services to the group's serviced residences such as Bintang Fairlane Residences in Bukit Bintang, Kuala Lumpur, and plans to expand overseas.

By Business Times (by Sharen Kaur)

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